I think this cartoon would be more accurate if the caption was, " We are prepared to make you a loan, but first you have to prove that you really can't afford to pay it back." I think it's fair to say that everyone could use more money so in some way or another people can argue that they need a loan but you can't argue that your salary qualifies you for something you can't afford even though that's one of the things that got us into trouble in the first place.
It's funny that now even people/companies that can actually afford to repay their loans (ie Apple) can't get them. smh sad.
I agree with Azia (or Marie?) that this caption was not very good, or I just didn't get it. Is the point that now banks are only lending to people who don't need loans? Or that the only people who can get loans are so well off that they don't need them?
I think that the point is that it is easy to secure a loan if you are well off...aka banks are loaning to people who are well off and may not need a loan as badly as others, who may be using their loan to open a new business or buy a building rather than to put a down payment on a car or something like that
I agree with Eric, there isn't going to be as much risk taken on by bankers with people they know can't afford it. So now they are only focusing on helping people with a strong salary or credit history to support the loan and pay it back.
I also agree with Eric, banks are going to be somewhat risk adverse, particularly in times of financial uncertainty. Providing loans to people they know can afford it is a better move for them from a business standpoint. Also, like Eric said, I think opening new business, which would be beneficial to the economy and has potential for future profits, would be preferable to down payments on a car which would have a quickly depreciating value.
I feel that banks are making loans based on who can pay them back in a respectable amount of time. I think that the cartoon and the caption are a good representation of what has been going on in the recent years. However, I don't feel that the banks are making smarter decisions when doing this.
I think this cartoon would be more accurate if the caption was, " We are prepared to make you a loan, but first you have to prove that you really can't afford to pay it back." I think it's fair to say that everyone could use more money so in some way or another people can argue that they need a loan but you can't argue that your salary qualifies you for something you can't afford even though that's one of the things that got us into trouble in the first place.
ReplyDeleteIt's funny that now even people/companies that can actually afford to repay their loans (ie Apple) can't get them. smh sad.
I agree with Azia (or Marie?) that this caption was not very good, or I just didn't get it. Is the point that now banks are only lending to people who don't need loans? Or that the only people who can get loans are so well off that they don't need them?
ReplyDeleteI think that the point is that it is easy to secure a loan if you are well off...aka banks are loaning to people who are well off and may not need a loan as badly as others, who may be using their loan to open a new business or buy a building rather than to put a down payment on a car or something like that
ReplyDeleteI agree with Eric, there isn't going to be as much risk taken on by bankers with people they know can't afford it. So now they are only focusing on helping people with a strong salary or credit history to support the loan and pay it back.
ReplyDeleteI also agree with Eric, banks are going to be somewhat risk adverse, particularly in times of financial uncertainty. Providing loans to people they know can afford it is a better move for them from a business standpoint. Also, like Eric said, I think opening new business, which would be beneficial to the economy and has potential for future profits, would be preferable to down payments on a car which would have a quickly depreciating value.
ReplyDeleteI feel that banks are making loans based on who can pay them back in a respectable amount of time. I think that the cartoon and the caption are a good representation of what has been going on in the recent years. However, I don't feel that the banks are making smarter decisions when doing this.
ReplyDelete